How to Improve Credit Score
One should have an acceptable credit score in order to be able to rent a nice place, to get a mortgage, or any kind of loan. Your credit score is a three digit number that is based on analysis of your credit files and shows your creditability. Banks want to know your credit score in order to be sure you can pay them back. Besides, the higher your credit score is, the lower interest rates are. A landlord has a right to know your credit score to be certain you can pay your rent on time. To have a good credit score you should never forget about it and keep the track of all your expenses. If your score isn't so great, there are ways to improve the situation.
Always pay your bills right away - it shows how responsible you are. Even if you failed to do so in the past, you can start now. The main thing is: keep paying them on time.
Don't use credit cards
Don't use your credit card too much. You should use it only if you really need money. It's important that you keep your credit card balance low.
Check your credit score
To do so go to one of these free sites:
Or one of the paid ones:
The credit score is usually based on credit report info taken from one of the bureaus:
- Trans Union;
Feel free to contact any of them.
Pay your debts
Transferring your debt from one credit card to another will not do it for you, the only thing you can do to improve your credit score - pay your debt. The fact that you don't have a credit card will not affect your credit score. The fact that you have it and pay your debt on time - will. It shows you can handle paying a loan & it shows your responsibility. Remember: if you close an account it will still be in your credit report. Be very careful closing it.
- Don't open a credit card account if you don't need it.
- Don't open many bank accounts in a short period of time. Remember: they may be hard to handle, and theoretically you can get into a huge debt. This is what will be taken into account.
- Stop using your credit cards today.
- Don't buy more stuff than you need, avoid impulsive purchases
As mentioned above, you should always remember about your credit score and be careful, as improving it takes time: a lender / landlord is going to want to know you are stable. You will need at least 6 months to make a good impression. Even if you believe your credit score is fine, you still may want to check it. For you to be ok, your score should be at least 620.
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